The shift to cloud accounting
Ten years ago, desktop accounting software was the default for small businesses. You bought a CD (or downloaded an installer), ran it on one computer, and backed up to a USB drive if you remembered. It worked - but it had real limitations.
Cloud accounting changed the model. Instead of software installed on a single machine, your accounting data lives in a secure server and is accessible from any device with a browser. The shift has been significant: most new small businesses in New Zealand and Australia now start with cloud software, and many established businesses have made the switch.
But cloud isn't automatically the right choice for everyone. Here's an honest comparison to help you decide.
Key differences at a glance
| Feature | Cloud accounting | Desktop software |
|---|---|---|
| Access | Any device, anywhere with internet | One computer (or shared network) |
| Updates | Automatic - always current | Manual; may require paid upgrades |
| Bank feeds | Automatic, daily | Manual import or limited connectivity |
| Collaboration | Real-time with accountant | File sharing required |
| Backup | Automatic, off-site | Manual; risk of data loss |
| Cost | Monthly subscription | Upfront purchase + upgrade costs |
| Internet required | Yes | No |
| Data ownership | Provider-hosted | Local |
The case for cloud accounting
For most small businesses today, cloud accounting offers a meaningfully better experience. The practical advantages are substantial:
Access from anywhere. Whether you're at the office, at a job site, or working from home, your accounts are accessible. This matters particularly for business owners who don't sit at the same desk every day.
Real-time bank feeds. Cloud software connects directly to your bank account and pulls transactions in automatically - usually within one business day. This makes reconciliation fast and keeps your cash position current.
Accountant collaboration. Your accountant can log in and review your books at any time, without you needing to export files and email them. This makes the relationship more efficient and reduces the cost of your annual accounts.
Automatic updates. Tax rules change. GST rates change. Payroll legislation changes. With cloud software, updates are applied automatically - you don't need to buy a new version or manually install patches.
When desktop software still makes sense
Desktop software isn't obsolete - there are situations where it remains the better choice.
No reliable internet. If your business operates in an area with poor connectivity, or you need to work offline regularly, desktop software is more reliable. Cloud software requires a working internet connection to function.
Data sovereignty concerns. Some businesses - particularly those handling sensitive client data - prefer to keep their financial records on local hardware rather than a third-party server. Desktop software gives you full control over where your data lives.
Existing investment. If you've built years of history in a desktop system and your workflow is working well, the disruption of switching may not be worth the benefits - particularly if your business is straightforward and your accountant is already familiar with your setup.
CashManager has both
CashManager was founded in 1994 and became a Kiwi company in 2000. CashManager Cloud is the modern cloud version - built for NZ and Australian small businesses that want the simplicity and accessibility of cloud software, backed by more than 30 years of accounting expertise.
Switching from desktop to cloud: what to expect
If you're considering making the switch, here's what the process typically looks like:
- Choose your start date. Most businesses switch at the start of a new financial year (1 April in NZ, 1 July in Australia) or at the start of a new GST period. This gives you a clean break and avoids splitting your records mid-year.
- Set up your chart of accounts. Your cloud software needs to be configured with your income and expense categories. If you're switching from desktop, your accountant can help map your existing categories across.
- Connect your bank feed. This is usually a five-minute process - you authorise the connection through your bank's online portal and transactions start flowing automatically.
- Enter opening balances. You'll need to enter your opening bank balance, outstanding invoices, and any other balances to get your starting position right.
- Run parallel for a period. Some businesses run both systems simultaneously for a month or two to build confidence. This isn't always necessary, but it's a sensible precaution for complex setups.
CashManager Cloud: built for NZ & AU small businesses
CashManager Cloud is designed to be simple enough to use yourself, powerful enough to keep your accountant happy, and priced fairly for small businesses in NZ and Australia - from $20/month for the non-GST plan, $25/month for the GST plan.
If you're thinking about switching, we're happy to talk it through. Call us on 0800 707 111 - real NZ & AU-based support, no bots.